Least of the following is exempt from tax:
(i) 50% of salary* for metro cities** and 40% of salary for other cities
(ii) Actual HRA received
(iii) Excess of rent paid over 10% of salary*
* Salary = Aggregate of basic salary, DA (to the extent it forms part of retirement benefits) and turnover based commission
** Delhi, Mumbai, Kolkata, Chennai

Available to

Individual - Salaried Employee

Leave travel concession or assistance received by an employee (Subject to certain conditions and limited to amount actually spent)Section 10(5)

Notes:

The amount should be received by employee from his employer or former employer for leave to any place india during term of service or after retirement/termination;

Exemption shall be available for amount incurred in respect of fare for going anywhere india by employee along with his family. The family means - her/his spouse and children, parents, brothers and sisters only when they are wholly or mainly dependent on the assessee.

The exemption can be availed for two journeys in a block of 4 calendar years.

Exemption shall be available for journey performed by a shortest route and by prescribed mode of transportations in prescribed situations.

Exempt Amount

Limited to amount actually spent and subject to maximum limits as specified

Available to

Individual - Salaried Employee

Encashment of unutilized earned leave at the time of retirementSection 10(10AA)

a) Government employee

Exempt Amount

Entire Amount

Available to

Individual - Salaried Employee

b) Other employees

Exempt Amount

Least of the following shall be exempt from tax:

Amount actually received

Unutilized earned leave* X Average monthly salary

10 months Average Salary**

₹ 3,00,000

*While computing unutilized earned leave, earned leave entitlements cannot exceed 30 days for each year of service rendered to the current employer

**Average salary = Average Salary*** of last 10 months immediately preceding the retirement

Income of minor child clubbed under Section 64(1A) with parent's incomeSection 10(32)

Exempt Amount

₹ 1,500 per child or Income of Minor, whichever is lower

Available to

Individual

Death-cum-Retirement GratuitySection 10(10)

(i) Government employees

Exempt Amount

Entire Amount

Available to

Individual - Salaried Employee

(ii) Other employees who are covered under Gratuity Act, 1972 -

Exempt Amount

Least of following amount is exempt from tax:
1. (*15/26) X Last drawn salary** X completed year of service or part thereof in excess of 6 months.
2. ₹ 10,00,000
3. Gratuity actually received.
*7 days in case of employee of seasonal establishment.
** Salary = Last drawn salary including DA but excluding any bonus, commission, HRA, overtime and any other allowance, benefits or perquisite

Available to

Individual - Salaried Employee

(iii) Other employees who are not covered under Gratuity Act, 1972

Exempt Amount

Least of following amount is exempt from tax:
1. 1/2 X Average Salary* X Completed years of service
2. ₹ 10,00,000
3. Gratuity actually received.
*Average salary = Average Salary of last 10 months immediately preceding the month of retirement
**Salary = Basic Pay + Dearness Allowance (to the extent it forms part of retirement benefits)+ turnover based commission

Available to

Individual - Salaried Employee

Commuted value of pensionSection 10(10A)

a) Government employee

Exempt Amount

Entire Amount

Available to

Individual - Salaried Employee

b) Other employees

Exempt Amount

1. 1/3rd of full value of commuted pension, if gratuity is received by the employee
2. 1/2 of full value of commuted pension, if gratuity is not received by the employee

Available to

Individual - Salaried Employee

Amount received on Voluntary Retirement or Voluntary Separation (Subject to certain conditions)Section 10(10C)

Exempt Amount

Least of the following is exempt from tax:
1) Actual amount received as per the guidelines i.e. least of the following
a) 3 months salary for each completed year of services
b) Salary at the time of retirement X No. of months of services left for retirement; or
2) ₹ 5,00,000

Available to

Individual - Salaried Employee

Retrenchment Compensation received by a workman under the Industrial Dispute Act, 1947. (Subject to certain conditions)Section 10(10B)

Exempt Amount

Least of the following shall be exempt from tax:
a) An amount calculated as per section 25F(b) of the Industrial Disputes Act, 1947;
b) ₹ 5,00,000; or
c) Amount actually received.

Available to

Individual - Salaried Workmen

Payment from Public Provident Fund or Statutory Provident FundSection 10(11)

Exempt Amount

Entire Amount

Available to

Individual and HUF

Any payment from an account, opened in accordance with the Sukanya Samriddhi Account Rules, 2014 10(11A)

Exempt Amount

Entire amount (including interest accrued on the deposit made in such account) shall be exempt from tax

Amount received by individual member from HUF. [Subject to the provisions of Section 64(2)]Section 10(2)

Exempt Amount

Entire amount

Available to

Individual, being a member of an HUF

Share of profit received by partners from a partnership firmSection 10(2A)

Exempt Amount

Entire amount

Available to

Partners in a partnership firm

Interest on notified savings certificates issued before 01-06-2002 by the Central Government and subscribed to in convertible foreign exchangeSection 10(4B)

Exempt Amount

Entire Amount

Available to

Individual, being a citizen of India or a person of Indian Origin, who is a non resident.

Income of any member of family of any individual [referred to in section 10(8), 10(8A) or 10(8B)] which accrues or arises outside India and is not deemed to accrue or arise india and which is subject to tax in that foreign countrySection 10(9)

Exempt Amount

Entire Amount

Available to

Individual

Compensation received for any disaster from Government/ Local Authority (Subject to certain conditions)Section 10(10BC)

Exempt Amount

Entire amount except for the amount allowed as deduction under this Act on account of loss caused by such disaster.

Available to

Individual or his Legal heir

Tax paid by the employer on perquisites (not provided for by way of monetary payments) given to employeeSection 10(10CC)

To the extent provided in Rule 8 of Part A of the Fourth Schedule of the Income-Tax Act.

Available to

Individual - Salaried Employee

Payment from Approved Superannuation Fund on death or retirement of employee, etc. (Subject to certain conditions)
W.e.f assessment year 2017-18, any amount transferred from superannuation fund to the notified pension scheme referred to in Section 80CCD shall also be exempt from taxSection 10(13)

Exempt Amount

Exempt subject to certain limits

Available to

Individual - Salaried Employee

Prescribed allowances for performance of official dutiesSection 10(14)

Exempt Amount

To the extent allowance actually incurred for the performance of official duties.

Individual, being a:
a) NRI or nominee or survivor of NRI;
b) Individual to whom bonds have been gifted by NRI

Interest payable by scheduled bank on deposits in foreign currency where acceptance of such deposits by the bank
is duly approved by RBISection 10(15)(iv)(fa)

Exempt Amount

Interest Amount

Available to

a) Non-resident
b) Individual or HUF being a resident but not ordinary resident

Interest received from Government on deposits in notified scheme out of moneys due on account of retirementSection 10(15)(iv)(i)

Exempt Amount

Interest Amount

Available to

Individual, being an employee of Central and State Government or Public Sector Company.

Interest on deposits made on or after 01.04.2005 is an offshore banking unit referred to in Section 2(u) of the Special Economic Zones Act, 2005Section 10(15)(viii)

Exempt Amount

Interest Amount

Available to

Person who is a non-resident or not ordinarily resident.

Scholarships granted to meet the cost of educationSection 10(16)

Exempt Amount

Entire Amount

Available to

Individual

Family pension received by the widow, children or nominated heirs of a member of the armed forces (including paramilitary forces) where death of such member has occurred in the course of operational duties (subject to prescribed conditions and circumstances)Section 10(19)

Exempt Amount

Entire Amount

Available to

Individual - Widow or children or nominated heirs of members of the armed forces.

Remuneration received by Foreign Diplomats/Consulate and their staff (Subject to conditions)Section 10(6)(ii)

Exempt Amount

Entire Amount

Available to

Individual (not being a citizen of India)

Remuneration received by non-Indian citizen as employee of a foreign enterprise for services rendered india, if:Section 10(6)(vi)

Foreign enterprise is not engaged in any trade or business india

His stay india does not exceed in aggregate a period of 90 days in such previous year

Such remuneration is not liable to deducted from the income of employer chargeable under this Act

Exempt Amount

Entire Amount

Available to

Individual - Salaried Employee (not being a citizen of India)

Salary received by a non-resident, for services rendered in connection with his employment on a foreign ship if his total stay india does not exceed 90 days in the previous yearSection 10(6)(viii)

Remuneration received by an Individual, who is not a citizen of India, as an employee of the Government of a foreign state during his stay india in connection with his traing in any Government Office/Statutory Undertaking, etcSection 10(6)(xi)

Exempt Amount

Entire Amount

Available to

Individual - Salaried Employee (not being a citizen of India)

Foreign allowances or perquisites paid or allowed by Government to its employees posted outside IndiaSection 10(7)

Exempt Amount

Entire Amount

Available to

Individual- Salaried Employee (being a citizen of India)

Foreign income and remuneration received from Foreign Government in connection with any co-operative technical assistance programme and projects in accordance with agreement entered into by Central Government and Foreign Government (Subject to certain conditions)Section 10(8)

Exempt Amount

Entire Amount

Available to

Individual

Foreign income and remuneration received by consultant (agreement relating to his engagement must be approved) out of funds made available to an international organization (agency) under a technical assistance grant agreement between that agency and the Government of a foreign State (Subject to certain conditions)Section 10(8A)

Exempt Amount

Entire Amount

Available to

Individual, being a:
a) A non-resident engaged by the agency for rendering technical services india;
b) Non-Indian citizen; or
c) Indian citizen who is not ordinarily resident india

Foreign income and remuneration received by an employee off the consultant as referred to in Section 10(8A) (contract of service must be approved by the prescribed authority before commencement of service)Section 10(8B)

Exempt Amount

Entire Amount

Available to

Individual, being a:
a) Non-Indian citizen; or
b) Indian citizen who is not ordinarily resident india

Daily Allowances received by members of ParliamentSection 10(17)(i)

Exempt Amount

Entire Amount

Available to

Individual - Member of Parliament or State Legislature or any Committee thereof.

Any Allowance received by MP under Member of Parliament (Constituency Allowance) Rules, 1986Section 10(17)(ii)

Exempt Amount

Entire Amount

Available to

Individual - Member of Parliament

Any Constituency Allowance receivedSection 10(17)(iii)

Exempt Amount

Entire Amount

Available to

Individual - Member of State Legislature

Notional annual value of any one palace occupied by former RulerSection 10(19A)

Exempt Amount

Entire amount

Available to

Individual

Any income received by a unit holder from an investment fund [being of the same nature as income chargeable under the head PGBP]Section 10(23FBB)

Exempt Amount

That proportion of distributed income which is of the same nature as income chargeable under the head PGBP.

Available to

Unit holder of an investment fund specified under Section 115UB

Any income received by a unit holder from business trust, not being that proportion of the income of business trust which is in the nature of:Section 10(23FD)
a) interest received or receivable from a SPV; or
b) any income from renting or leasing or letting out any real estate asset owned directly by such business trust (REIT)

Exempt Amount

Any income (except interest received from a SPV or any rental income) distributed by business trust to its unit holders

Available to

Unit holder of a business trust.

Specified income of a member of Specified Scheduled Tribes residing in Specified AreasSection 10(26)

Exempt Amount

Entire Amount

Available to

Individual being a member of Scheduled Tribe

Income from any source in the State of Sikkim or income by way of dividend or interest on securities (Subject to certain conditions)Section 10(26AAA)

Exempt Amount

Entire Amount

Available to

Individual, being a Sikkimese (other than Sikkimese Woman who, after 31-03-2008, marries non-Sikkimese)

Capital gains arising on compulsory acquisition of urban agriculture land, if:Section 10(37)
a) Compensation is received after 31-03-2004; and
b) Agriculture land was used by taxpayer or his parents for agricultural purpose during last two years
(Subject to certain conditions)

Exempt Amount

Entire Amount of capital gains

Available to

Individual and HUF

Amount received by an Individual as a loan under reverse mortgage scheme referred to in Section 47(xvi)Section 10(43)

Exempt Amount

Entire Amount

Available to

Individual

Any notified allowance/ perquisite paid to the Chairman/retired Chairman or any other member/ retired member of UPSCSection 10(45)

Exempt Amount

Entire Amount

Available to

Individual - Chairman/ Retired Chairman or any other member/ retired member of UPSC

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